I have some quartz watches with smooth sweeping second hands, including Seikos with 5S42 and 5S21 movements (4 steps per second, smoothed out to seemless appearance by running the second hand gear through a viscous dampening mechanism) and a Bulova 262kHz (16 steps per second, not 8 as a previous poster had said). The Bulova has a bigger cell than most quartz watches, though I note its CR2016 is the same as my old Longines VHP uses. Of course, the Longines gets 10 years out of that battery, whereas the Bulova gets two or three. The Seikos with their 32kHz oscillators and 4-steps-and-a-dampening-mechanism trick manage to get a good 5 years out a normal SR927SW.
As others have said, it's mostly about the battery drain. The very ealiest Beta 21 quartz movements had beautifully smooth second hands and batteries that lasted a year. I also agree with what others have said about their being very little consumer demand for smooth sweeping second hands on quartz watches.
One of the things I like most about quartz watches is their precise tick (especially where each tick sees the second hand perfectly hits each marker, as with my Grand Seikos). Indeed, my favourite mechanical watch that I have ever owned was a Habring2 with a deadbeat second complication. The attachment that some mechanical watch owners have for sweeping second hands is no doubt seen as a great triumph of marketing by the Swiss watch giants, but for many years prior to the quartz revolution, watch makers had been striving to replicate (reliably) in wrist watches the same deadbeat tick that made pendulum clocks so admired as instruments of precision. To be able to mark, consistently and precisely, the start and finish of each second opens the door to the realisation of the original horological goal - the accurate measurement of time.
And since the competition for accuracy and precision has been dominated by quartz watches since the 1970s, why would brands look to sell short that achievement (and increase costs / sacrifice battery life) by going for a smooth sweeping second hand? Well, clearly some have, in order to give their watches a USP, but honestly I find the smooth sweeping second hand on my Bulova Precisionist to be a stark contradiction to the name 'precisionist'.